- Abu Dhabi – Abdul Hai Mohammed
March 19, 2020 The UAE Central Bank announced yesterday the issuance of a ‘dormant accounting system’ to be applied to banks operating in all of the country. The system confirms the bank’s protection of the dormant accounts of bank customers, and it also requires the banks to separate the dormant account balances and to enable clients (or their legal heirs) to receive the balances available in them.
His Excellency Mubarak Al-Mansouri, the bank’s governor, confirmed that the new system aims to establish a general framework for controlling and protecting funds in dormant accounts in banks, noting that it comes as part of the bank’s continuous efforts to enhance the consumer protection function, and pointed out that the new system guarantees protection of dormant accounts, as well as ensuring Enabling clients to reach them at any time, indicating that the aim of this system is to enhance and strengthen the position of the Emirates as a leading center in providing financial services in the region, and to verify the availability of a model banking environment for consumers.
He stressed that consumer protection remains an important focus point in the bank’s strategy, noting that the bank continues to commit to work continuously to develop and strengthen its control systems to secure and protect consumer rights.
The Central stressed that it is expected that the banks will have appropriate policies and governance procedures, through which it is possible to verify that the funds available in the dormant accounts are kept in a safe and secure manner, and that they are available and available at the customer’s request. Inactivity in this system is defined at the customer level and not at the individual account level.
The system determines the mechanism by which customers can claim their money from the bank. Clients must be able to receive any balances due to them, at any time, regardless of the period of time during which the customer remained classified as a ‘dormant customer’.
In the event that the customer remains classified as a “dormant customer” for a period of 5 years from the date of the last transaction on his account, then the relevant funds available in his account (s) must be transferred to the central bank for protection.
This procedure does not affect ownership, and the funds transferred to the Central Bank will always be available to claim their recovery, at any time, by the dormant customer or his legal heirs, through his bank. It is necessary for clients to ensure that they do not fall under the ‘dormant’ category in accordance with the standards stipulated in this system.
The funds transferred to Al-Markazi will not be due for interest or profit payments, and Al-Markazi will not be responsible for any such payments on the transferred funds. The bank confirmed that it will not be legally responsible or obligated in any way for any claim by the customer regarding interest or profit returns related to any money transferred to it.